Earnings season is just around the corner, and several companies scheduled to report next week have a history of beating Wall Street expectations. Nearly 30 S&P 500 companies are scheduled to report next week. They include Bank of America, Goldman Sachs, and media giant Netflix. Using data from Bespoke Investment Group, CNBC Pro screened companies with a track record of beating analyst expectations at least 65% of the time and whose stock price rose at least 1% after announcing earnings. The following companies will release reports next week. Intuitive Surgical came out on top, beating analyst estimates by 89%, but has since risen 2.58%. BMO Capital Markets began coverage of the maker of robotic surgical systems this week with an Outperform rating, labeling it one of the top stocks in the sector. Analyst Vik Chopra pointed to the company’s deepening data-driven moat, increased procedural growth, and da Vinci usage, revenue and data cycles. “We are still in the early stages of the dV5 upgrade cycle, with surgical growth extending to new specialties and geographies, and with recurring revenue accounting for more than 80% of the total, the revenue stream is durable and visible,” the analyst said in a client note. “We believe da Vinci (dV5) is driving a self-reinforcing cycle of higher utilization, recurring revenue, and unique surgical data, justifying the premium multiple.” Many analysts are also bullish on the name, with 23 of 34 analysts rating it a “buy” or “strong buy,” according to LSEG. The consensus price target calls for a 38% upside from current levels. Another stock on the list is Morgan Stanley. The company exceeded analyst estimates by 80% and has a track record of rising 1.07% after announcing earnings. Bank of America this week raised its second-quarter earnings forecast for Morgan Stanley to $2.81 per share from $2.71. The company also raised its price target to $250, implying an upside of more than 12%. Bank of America analyst Ebrahim Poonawalla pointed to growth in Morgan Stanley’s wealth management, opportunities in its trading division and the performance of its Asian branch. “Given the wealth momentum, unique growth runway in (bonds, currencies, and commodities) trading ((additional leverage ratio) changes, reorganization that eliminated cost of funds disadvantage relative to peers), and a solid Asian franchise with continued strong momentum, we are positively biased toward print,” Poonawalla wrote.
